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5 New Job Opportunities
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[Official Guidance]
Text of IRS Announcement 2024-38: Second Remedial Amendment Cycle for §403(b) Pre-Approved Plans -- Issuance of Opinion Letters, Plan Adoption Deadline, Opening of Determination Letter Program, and Related Issues (PDF)
"This announcement provides a deadline for when an employer intending to maintain a Cycle 2 Section 403(b)
pre-approved plan must adopt that plan and the period during which the IRS will accept an application for an individual determination letter from an adopting employer of a Cycle 2 Section 403(b) pre-approved plan that is eligible to submit a determination letter request. This
announcement also discusses a procedural restatement rule that applies to all pre-approved plans and provides a reminder for adopting employers of Section 403(b)(9) retirement income account plans of a requirement provided by Section 403(b)(9)." MORE >>
Internal Revenue Service [IRS]
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[Official Guidance]
Draft of 2024 IRS Publication 915: Social Security and Equivalent Railroad Retirement Benefits (PDF)
34 pages, Nov. 21, 2024. "This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. It is prepared through the joint efforts of the IRS, the Social Security Administration (SSA), and the U.S.
Railroad Retirement Board (RRB)." MORE >>
Internal Revenue Service [IRS]
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[Guidance Overview]
IRS FAQs Provide Guidance on Reemployment of Veterans and Restoration of Plan Benefits (PDF)
"While the update does not provide any new guidance, it does provide a summary of the rules applicable to 401(k) plans when veterans are reemployed. " MORE >>
Thomson Reuters / EBIA
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[Guidance Overview]
Correcting 401(k) Auto-Enrollment Failures
"If the error is corrected under the SECURE 2.0 safe harbor procedures, then the plan's tax-qualified status will not be jeopardized. Also, if the correction procedures are followed, the employer will not need to make a qualified nonelective contribution for the missed
deferrals, although the employer will need to make a matching contribution if the employee would otherwise have been entitled to the matching contribution." MORE >>
planadviser
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Third Circuit Extends ERISA Creditor Protection to Flawed or Abused Retirement Plans
"Will a retirement plan's violation of ERISA requirements mean that the anti-alienation protection will dissolve? The Third Circuit held that such was not the case. Although a retirement plan which violated the ERISA rules might suffer other consequences, it was still a plan
that fell within the ambit of ERISA and thus the anti-alienation protection held its vitality." [In re Gilbert, No. 23-2944 (3d Cir. Oct. 24, 2024)] MORE >>
Forbes; subscription may be required
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House Education and Workforce Committee Letter to DOL Inspector General Questioning EBSA Sharing of Confidential Retirement Plan Information with Plaintiffs' Attorney (PDF)
"The Committee on Education and the Workforce (Committee) has learned that the Department of Labor (DOL) shared confidential information involving at least six employee benefit pension plans with a plaintiffs' attorney.... DOL appears to be working in concert with
plaintiffs' attorneys to circumvent the discovery protections of the FRCP by conducting a fishing expedition under the guise of an EBSA investigation and then supplying confidential information to plaintiffs' attorneys for use in private litigation against plan fiduciaries.... EBSA must immediately take steps to protect the confidentiality of information gathered during investigations and to reassure employee benefits plan
fiduciaries that their cooperation during investigations will not lead to coercive actions from plaintiffs' attorneys." MORE >>
Committee on Education and the Workforce, U.S. House of Representatives
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Guide to Governmental Defined Contribution Plans
18 pages. "This introductory guide and linked resources will help you decipher the characteristics and interplay between these various plan types and provide some practical information for effectively engaging with these plans, as a trustee, board member, plan sponsor, or
administrator." MORE >>
National Association of Government Defined Contribution Administrators [NAGDCA]
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CITs in 403(b)s Saga Continues: Push and Pushback
"While some consumer groups urge lawmakers to reject a bill that would allow collective investment trusts in 403(b) plans, advocates ramp up push for passage before year’s end" MORE >>
401(k) Specialist
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How Much Could a New Social Security Minimum Benefit Help Seniors? (PDF)
29 pages. "[The authors] model the potential impact of adding a new minimum benefit to Social Security ... [R]estricting a full minimum benefit to retirees with long employment histories who did not retire early would substantially limit its effectiveness. Moreover, unless a
new minimum benefit protects access to social welfare programs, the outcome would be a new benefit that is not as strong as intended for some people, a financial wash for others, and even more financial insecurity for still others." MORE >>
AARP
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Redesigning Social Security's Minimum Benefit to Reduce Poverty Among Older Americans (PDF)
20 pages. "[I]nsights that should inform the design of a future minimum benefit proposal: [1] A minimum benefit that helps only long-term low earners is insufficient to significantly reduce poverty. [2] Targeting the minimum benefit based on beneficiaries' current
household income can yield greater reductions in poverty and make it more cost effective. [3] Even with targeting, an effective minimum benefit will cost more than the most common minimum benefit proposals that target long-term low earners. [4] Changes to the minimum benefit must address interactions with Supplemental Security Income (SSI) and other means-tested programs or risk leaving some beneficiaries worse
off." MORE >>
AARP
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[Opinion]
Defined Contribution Retirement Plans Meet Public Employee and Employer Needs
"As the DC-based, income-focused retirement plan is the best design to meet the needs of governmental employers and employees today, stakeholders in public retirement plans, including employers, employees, unions, legislators, and others, should consider expanding and emphasizing
this approach for new hires." MORE >>
Reason Foundation
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Executive Compensation and Nonqualified Plans |
Should You Invest in a Deferred Compensation Plan?
"A deferred compensation plan can be a valuable tool if you're looking for tax deferral, have a high-income year, or want to supplement your retirement savings. However, it's crucial to balance the benefits against the potential risks -- especially the lack of
protection for non-qualified plans and limited access to funds." MORE >>
Savant
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Employee Benefits Jobs
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Selected New Discussions |
ADP Refund from New Deferrals After Full Distribution
"1/1/2023 to 12/31/2023 ADP test failed. HCE is due an ADP refund of $3,000. The HCE in question took a full in-service distribution in June of 2024. He rolled it over to an IRA. He continued to defer into the 401(k) plan, and has deferred approximately $5,000 from June of 2024
to current date. When correcting the failed ADP test for plan year 2023, is it permissible to refund the $3,000 based on his current account balance (of the $5k deferred in 2024)? Or does the rollover to the IRA need to designate that $3k was ineligible to be rolled over?"
BenefitsLink Message Boards
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Self-Certified Hardship Withdrawal
"Does the plan document need to have an amendment that allows for the participant to self-certify the request? Does the participant need to provide any documentation to the Plan Administrator/Trustee for the hardship reason and the amount required? The request is being made for
the full amount in the participants account."
BenefitsLink Message Boards
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Press Releases |
Stax.ai Raises Funding to $11.65M, Marking New Era for Retirement TPA Industry
Stax.ai
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Strongpoint Partners Announces Partnership with Karel-Gordon & Associates
Strongpoint Partners
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Webcasts and Conferences (Retirement Plans / Executive Compensation) |
How Company Mergers Affect Retirement Plans
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401(k) Specialist Magazine
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Last Issue's Most Popular Items |
2024 Qualified Retirement Plan and Health and Welfare Plan Checklist: A Very Demure, Very Mindful Year
Eversheds Sutherland
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2024 End-of-Year Plan Sponsor 'To Do' List, Part 2: Annual Cost of Living Adjustments
Snell & Wilmer L.L.P.
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DOL Confirms Cybersecurity Guidance Applies to All ERISA Plans
Sequoia
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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.
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